July 13, 2010

Dow Jones hits the trend line

  • Dow Jones hits an important trend line in daily chart.
  • Look how the trend line combines with the 200 DMA to give a double resistance.
  • But the index is trading above both these points as of now. 
  • Closing above the trend line and the 200 DMA will make the bulls stronger and it is necessary for continuation of this rally.

Dow Jones Trading above 50 DMA

  • Dow Jones is trading above 50 DMA and 50 week moving average right now.
  • The recent bull rally was resisted by the 50 DMA. But this time that did not happen. 
  • The only major hurdle before Dow Jones moving to 10600 is the 200 DMA. Will it be the 200 DMA that stops this rally?. We will know the answer soon.
  • DOW WITH FUTURES NEGATIVE DIVERGENCE

Dow Jones Futures with negative divergence

  • Dow Jones futures has been showing negative divergence for quite sometime.
  • But the price confirmation is not happening. 
  • So even if there is negative divergence untill the hour chart makes a lower high this market remains buy on dips.

Nifty spot hour chart analysis

UPDATED CHART
  • Finding resistance near recent high price level. Should close above it to show the complete strength of bulls.

  • Nifty spot hour chart trading near yesterday's high
  • Closing above yesterday's high on hourly basis will show the strength of the bulls.

Nifty Futures chart with support and resistance lines

UPDATED CHART
  • Nifty futures is trading near important support and resistance lines.
  • For more upsides the resistance line needs to be crossed and a close above that on hourly basis is a must.
  • But for now it is trading below the support line.
  • NIFTY SPOT DAILY CHART ANALYSIS

Nifty spot Hour chart

UPDATED CHART

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  • It seems we will get a good intraday direction today.
  • If it stays below the support line it is going to go down further.

EUR/USD Head and shoulders in hour chart

  • Eur/Usd has formed a head and shoulders in hour chart.
  • Break down from the neck line will be bearish for the pair.
  • Will show its effect on equity markets if it goes down too much.

Nifty daily chart analysis

NIFTY DAILY CHART
  • Nifty is still trading above 5 day high ema.
  • The doji which i saw yesterday is not visible in chartnexus chart.
  • There is a possible raising wedge pattern developing will confirm in the coming days.
  • CNX IT BREAKS OUT

Dow Jones analysis after closing bell

WEEKLY CHART
DAILY CHART

HALF HOUR CHART

  • The price was not allowed to go above the 50 week moving average today.
  • And another resistance in daily chart are the fib retrace level of 61.8% and if it crosses that the 50 day moving average is there.
  • A Triangle is developing in the in the 30 minutes time frame. One has to be careful because of these resistances the upside break out may end up as a false one. Keep appropriate stop loss for the long trades